Foxconn Electronics May Become World’s Largest Maker of Mainboards

After Asustek Computer, the world’s largest maker of computer mainboards, was split into three companies on the 1st of January, 2008, Foxconn Electronics, a major contract manufacturer of electronics, has a lot of chances to become the world’s largest maker of motherboards this year.

As of the 1st January of 2008, Asustek Computer was split into three separate companies each targeting their own directions. Asustek Computer will continue to operate its Asus brand business, which involves a broad lineup of products, including computer mainboards and add-in-cards, notebooks and smartphones, servers and communication equipment as well as multimedia and consumer electronics devices. The newly formed Pegatron Technology Corp. will produce PC-related devices, such as mainboards and add-in-cards for third party customers, whereas the newly created Unihan Technology Corp. will produce computer cases, various modules as well as take over non-PC contract manufacturing business.

Last year Asustek Computer shipped roughly 59 million of computer mainboards, 46 million of which were shipped to its partners, including large system vendors, while 13 million were supplied under Asus brand-name, reports Economic Daily News (EDN) news-paper (which article was partly translated by DigiTimes web-site). Meanwhile, motherboard shipments of Foxconn Electronics reached about 45 million units.

After Asustek spins off its contract manufacturing, it will remain among the largest producers of mainboards, though, it will be behind companies like Elitegroup Computer Systems (ECS), Gigabyte Technology and MicroStar International (MSI). Therefore, Foxconn Electronics’ main rival will be the newly formed Pegatron Technology.

It will be crucial for Foxconn and Pegatron not to lose traditional customers among hardware vendors this year. While the outcome of the battle is yet unclear, Foxconn may be a little better positioned for 2008 due to its experience in contract manufacturing.